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The Economics of the Internet Backbone Nicholas Economides, Stern School of Business Download the Paper (PDF format) - June 1, 2005 Tell a colleague about it. Printing Tips: Select 'print as image' in the Acrobat print dialog if you have trouble printing. ABSTRACT: This paper discusses the economics of the Internet backbone. I discuss competition on the Internet backbone as well as relevant competition policy issues. In particular, I show how public protocols, ease of entry, very fast network expansion, connections by the same Internet Service Provider (ISP) to multiple backbones (ISP multi-homing), and connections by the same large web site to multiple ISPs (customer multi-homing)enhance price competition and make it very unlikely that any firm providing Internet backbone connectivity would find it profitable to degrade or sever interconnection with other backbones in an attempt to monopolize the Internet backbone. SUGGESTED CITATION: Nicholas Economides, "The Economics of the Internet Backbone" (June 1, 2005). New York University School of Law. New York University Law and Economics Working Papers. Paper 4. http://lsr.nellco.org/nyu/lewp/papers/4 | REPOSITORY HOME  | SEARCH  | MY ACCOUNT  | NELLCO HOME | Powered by bepress.